New GST for Silk Sarees and Traditional Apparel: HSN Code and Rates
- The saree GST rate for silk sarees classifiable under HSN 5007 is 5%.
- Silk, cotton and man-made fabric sarees generally attract 5% GST, depending on their fibre classification.
- The 5% rate on silk sarees remained unchanged from 22 September 2025.
- Ready-made garments are classified separately and generally attract 5% up to ₹2,500 per piece and 18% above ₹2,500 per piece.
- GST-registered businesses may claim eligible ITC on taxable business purchases, subject to GST conditions.
Silk sarees are more than just clothing in India—they’re a symbol of tradition, culture, and heritage. Whether it’s a Kanjivaram, Banarasi, or handloom silk saree, these garments are widely bought for festivals, weddings, and celebrations. But what GST rate applies when you buy or sell a silk saree?
Let’s break down the complete GST structure on silk sarees and traditional ethnic wear in India.
Scan Silk Saree Barcodes at Showroom Billing Counter
Join our guided walkthrough to see how BUSY can transform your business operations.
New GST Rate on Silk Sarees in India
The GST on sarees in India depends on the constituent fibre and applicable HSN classification. There was no separate GST rate change for silk sarees on 22 September 2025, and silk sarees classifiable under HSN 5007 continue to attract 5% GST.
| Type of Saree/Fabric | HSN Code | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Silk sarees classifiable as woven silk fabric | 5007 | 5% | 5% |
| Handloom silk sarees classifiable under HSN 5007 | 5007 | 5% | 5% |
| Branded silk sarees classifiable under HSN 5007 | 5007 | 5% | 5% |
| Woven silk fabric used for saree making | 5007 | 5% | 5% |
Type of Saree/Fabric
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Type of Saree/Fabric
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Type of Saree/Fabric
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Type of Saree/Fabric
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Note: Blended sarees should be classified according to their actual fibre composition and applicable HSN rules. The ₹2,500 value-based GST threshold for garments applies to apparel under Chapters 61/62, not to sarees classifiable as woven fabric under HSN 5007.
Track Silk Saree Batch and Design Numbers in Stock
* No credit card required
GST on Handloom Silk Sarees
Although handloom products receive certain exemptions, handloom silk sarees are taxable at 5% if sold by:
- Registered sellers
- Branded outlets
- Online platforms
If sold by individual weavers or co-operative societies directly to customers, and if the turnover is below the threshold limit (₹40 lakh), GST registration may not be required, making them effectively GST-free in practice.
GST on Silk Fabrics and Dress Material
Silk yarn and woven silk fabric generally attract 5% GST:
- Silk yarn: HSN 5004 to 5006 – 5%
- Woven silk fabric: HSN 5007 – 5%
If the material is converted into ready-made garments under Chapters 61 or 62, the GST rate from 22 September 2025 is generally 5% up to ₹2,500 per piece and 18% above ₹2,500 per piece.
Input Tax Credit (ITC) for Silk Saree Sellers
GST-registered sellers of silk sarees can claim Input Tax Credit on:
- Yarn and fabric purchases
- Tailoring or embroidery charges
- Packaging and logistics
- Rent and marketing services
Even though the output tax is 5%, Input Tax Credit (ITC) helps offset input expenses, making compliance beneficial for saree retailers and wholesalers.
Understanding the gst for silk sarees and traditional apparel helps buyers know what they’re paying for—and helps sellers stay compliant while keeping pricing competitive. Whether you’re a boutique owner or a weaver, knowing the correct GST slab ensures your business is both culturally rich and tax-smart.
